520926 Lakh Returns were filed in first month of AY 2024-25
Before lending a home loan or any loan for that matter, financial institutions scan the applicant's income thoroughly
A low interest rate for housing loan is quite a trigger for those eyeing to purchase their dream abode for the longest time.
Most buyers would like to finance their dream houses through home loans. The Reserve Bank of India’s latest monetary policy review kept policy rates unchanged. This means interest rates for home loans will remain untouched for some time now. The current rates offered by top lending companies are well below 7% per annum. This includes the likes of State Bank of India (6.70%), Bank of Baroda (6.75%), ICICI Bank (6.75%), Kotak Mahindra Bank (6.65%) among others.
A low interest rate for housing loans is quite a trigger for those eyeing to purchase their dream abode for the longest time. However, one would not like inadequate documentation to play spoilsport in their loan application any day. Therefore, you must sort the key documents before starting the process of the loan application.
Checklist of documents
After selecting the lender, get the home loan application form and fill it carefully. Make sure to not leave any options blank as it causes unnecessary back and forth between the bank and applicant to verify details twice.
Next, you must have enough passport size photographs that will be required at several stages of the loan application. For proof of authentication, you must have at least one of the following identity proofs. However, it is best to carry all of them to avoid any hassles.
-PAN Card
-Passport
-Aadhaar Card
-Voter’s ID Card
-Driving License
You must produce a document to prove your age to the lender. Any of the following should suffice to fulfill the requirement.
-Aadhaar Card
-PAN Card
-Passport
-Birth Certificate
-10th Class Marksheet
-Bank Passbook
-Driving License
The loan applicant’s current proof of residence is also a mandatory field and the lender must be provided with the following documents to verify these details.
-Bank Passbook
-Voter’s ID
-Ration Card
-Passport
-Utility bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill)
-LIC Policy Receipt
-Letter from a recognized public authority verifying the customer’s address
Before lending a home loan or any loan for that matter, financial institutions scan the applicant’s income thoroughly. This is only to assess and make sure whether the person is capable of repaying the loan amount requested.
For Salaried Individuals:
-Form 16
-Certified letter from Employer
-Pay-slip of last 2 months
-Increment or Promotion letter
-IT returns of past 3 years
Apart from the proof of income of the salaried individual, they would also have to furnish certain investment proofs (like fixed deposits, shares, etc).
Self Employed:
-Income Tax Returns (ITR) of last 3 years
-Balance Sheet and Profit & Loss Account Statement of the Company/Firm (duly attested by a C.A.)
-Business License Details (or any other equivalent document)
-The license of Professional Practice (For Doctors, Consultants, etc.)
-Registration Certificate of Establishment (For Shops, Factories & Other Establishments)
-Proof of Business Address
Property documents
When applying for a home loan, remember to always get the documents of the property duly verified. They need to be submitted to the lender as a key component to assess the end use of the funds being granted as home loan to the applicant. Here is the list of property documents that must be produced to avail the loan.
-No Objection Certificate (NOC) from concerned Society/Builder
-Detailed estimate of the cost of construction of the house
-Registered Sale Deed, Allotment Letter or Stamped Agreement of Sale with the Builder (original document)
-Occupancy Certificate (for ready-to-move-in properties)
-Property Tax Receipts, Maintenance Bills and Electricity Bills
-Receipts of the advance payments made towards the purchase of flat (original document needed)
-An approved copy of the building plan (key plan/floor plan in case of purchase of flats)
-Original of the land tax paid receipt and possession certificate as issued by the revenue authority
-Payment receipt or bank account statements showing payments made to the Builder or Seller